Depreciation is an income tax deduction that allows the decrease in value of tangible assets and the allocation of the cost of assets to periods in which the assets are used. The decrease of value of the asset is recorded as an expense item on the Profit and Loss statement.
The process of calculating the amount to be depreciated depends on the type of asset purchased and at what time of year it was purchased. It is advantageous to purchase assets earlier in the year so the business can claim a higher depreciation expense.
Diversified Management Services, Inc. (DMS) can help your company in the process of recording this valuable tax deduction. DMS has the ability to procude Depreciation Schedules for your business so that they can be presented to your C.P.A. for tax return purposes.
Contact us today to see what we can do for you.